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COURSE CODE: BMEC 1

COURSE TITLE: OPERATIONS
MANAGEMENT
2nd Sem. SY | 2023- 2024
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Chapter 3:
Product Design
and Process
Selection
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Intended Learning
Outcomes:
 Define the role of business strategy
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Topics:

 Product Design
 The Design Process
 Factors Impacting Product Design
 Process Selection
 Designing Processes
 Technology Decision
 Designing Services
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Product Design
and Process
Selection
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Product Design
and Process
Selection
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Product Design
and Process
Selection
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Product Design

 Process of deciding on
the unique
characteristics and
features of the
company's product.
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Product DesignProcess Selection

 Process of deciding on  The development of the

the unique process necessary to
characteristics and produce the designed
features of the products.
company's product.
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Design of Service vs. Goods

 Design Elements- Manufacturing and retail in

which the product is tangible.
 Services Elements- Intangible, promptness,
friendliness
 Service Design- The process of establishing all
the characteristics of the service, including
physical, sensual, and psychological benefits.
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The Product Design Process

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The Product Design Process

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The Product Design Process

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The Product Design Process

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Factors Impacting Product

Design
• Design for Manufacture
• Product Life Cycle
• Concurrent Engineering
• Remanufacturing
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Factors Impacting Product

Design
• Design for Manufacture (DFM)-
A series of guideline to follow in
order to produce a product
easily and profitably.
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Factors Impacting Product

Design
• Product Life Cycle- A series of
stages that product pass through
in their lifetime characterized by
changing product demands over
time.
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Factors Impacting Product

•Design
Concurrent Engineering-
A approach that brings
together multifunction
teams in the early phase
of product design in order
to simultaneously design
the product and the
process.
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Factors Impacting Product

Design
• Remanufacturing- A concept of using
components of old products in the
production of new ones.
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Process Selection
Two Broad Categories
• Intermittent Operations
• Repetitive Operations
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Process Selection
Two Broad Categories
• Intermittent Operations-
Processes used to produce a
variety of products with
different processing
requirements in lower
volumes.
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Process Selection
Two Broad Categories
• Repetitive Operations-
Processes used to produce one
or a few standardized products
in a high volume.
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Differences between Intermittent and

Repetitive Operations
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Differences between Intermittent and

Repetitive Operations
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Designing Processes
• Process Flow Analysis- Technique used to evaluating
a process in terms of the sequence of steps from
inputs to output with the goal in improving its
design.

• Process Flow Chart – A chart showing the sequence

of steps in producing the product or service.

• Bottleneck- Longest task in the process

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Designing Processes
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Designing Processes
• Make to Stock Strategy- Produces standard
products and services to immediate sale or delivery.

• Assemble to Order Strategy – Produces standard

components that can be combined the customer
specification.

• Make to Order Strategy- Produces products to

customer specification s after an order has been
received.
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Designing Processes
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Process Performance Metrics

Measurement s of
different process
characteristics that
tell how a process is
performing.
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Process Performance Metrics

Example:
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Technology Decision
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Technology Decision

• Information Technology
(IT)-Technology that enables
storage, processing and
communication of
information within and
between firms.
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Technology Decision

• Enterprise Resource
Planning (ERF)-Large
software program used for
planning and coordinating
all resources throughout the
entire enterprise.
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Technology Decision

• Global Positioning System

(GPS)- A type of wireless
technology that uses
satellite transmission to
communicate exact
locations.
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Technology Decision

• Radio Frequency
Identification (RFID)- A
wireless technology that
uses memory chips
equipped with radio
antennas attached to the
objects used to transmit
streams of data.
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Technology Decision

• Automation- Using
machinery to perform work
without human operators
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Designing Services
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Designing Services

What are the services different

from Manufacturing?
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Designing Services
Classification of
business operations
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Product design and Process Selection Across

the Organization

• Operations
• Marketing
• Finance
• Information Technology
• Human Resources
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